The tribunal had directed CCI's probe unit Director General (DG) to conduct a fresh probe into the allegations of abuse of dominance and anti-competitive practices by Uber.Samanwaya Rautray | ET Bureau | January 28, 2017, 09:25 IST

The Supreme Court on Friday ordered that status quo be maintained on a petition by taxi operator Meru accusing rival Uber of predatory pricing, effectively staying a probe by the Competition Commission of India into the case.

The Competition Appellate Tribunal had ordered the probe in December. The allegation is that Uber’s predatory pricing was driving competitors and small taxi operators out of business.

The CCI in last February rejected Meru’s plea for a probe citing lack of relevant data, but the tribunal ordered the antitrust body’s director-general to investigate the matter. Uber India Systems, which offers app-based taxi aggregation service, challenged this in the top court.

After a short hearing, a bench comprising justices Dipak Misra and DY Chandrachud issued notices to Meru Travels Solutions and the CCI, seeking their views on the appeal within four weeks. The case will be heard next on February 27.

Uber’s counsel Harish N Salve contested the tribunal order on the ground that it could not have ordered the CCI DG to initiate a fresh probe, without a prima facie adverse finding against the company on misuse of its dominant market position.

“The argument was that we are rich and hence dominant. What kind of argument is this,” he asked. Meru’s lawyer, Abhishek Manu Singhvi, said a probe was necessary. At the end of the hearing, the bench directed that status quo be maintained on the probe by the CCI DG, after Salve said that any news about an investigation would make headlines the world over.

Meru said it started its Delhi operations in 2008 and switched to app-based services in 2012. Uber entered the market in 2013 and used its deep pockets to undercut prices and drive all competitors out, it claimed.